Can only one person in an unmarried couple claim gain/loss from home sale?

[georgesmixcd]

We bought and sold a home all in 2022 with a slight loss. We are both on the deed but, for simplicity sake, would like to have the purchase/sale, and all the appropriate details, listed out on one of our returns. Is this acceptable?

[xmasbaby0]

• .https://ttlc.intuit.com/questions/1901135-i-sold-my-home-at-a-loss-is-this-deductible

[Mike9241]

Each of you should report your share of the sale on your individual tax returns. Determine your share of the selling price, sales expenses, purchase price, purchase date, and purchase expenses. Each of you reports your portion of the sale.   this despite the possibility that the gain is under $250,000 and both of you are entitled to the maximum home sale exclusion. for example, if you put down the entire down payment and it's your funds that have been paying the mortgage perhaps it should be you that reports the entire sale.

[georgesmixcd]

Thanks for the quick reply @Mike9241  

The down payment and mortgage was all drawn under one persons account.

You mentioned one person reporting the sale. Is that acceptable, even though we’re both on the deed? We’re just trying to keep it simple and quick.

Thank you so much for your assistance.

[GeorgeM777]

It might be acceptable for only one party to report the sale on their return provided the 1099-S, Proceeds From Real Estate Transactions reflects only that party as the transferor.  Did you receive a 1099-S?  Generally, the party responsible for closing the transaction is the party that files the 1099-S.  When there are multiple transferors, as in your case, sometimes a 1099-S may reflect each transferor's allocable amount.  In that circumstance, both of you could file your respective returns consistent with the information on the 1099-S.

If there is no 1099-S, you need to get one.  The IRS provides the following guidance when no one party is responsible for the closing:

If no one is responsible for closing the transaction as explained in (1) above, the person responsible for filing is, in the following order: (a) the mortgage lender, (b) the transferor's broker, (c) the transferee's broker, or (d) the transferee.

Instructions for Form 1099-S at page 2

@georgesmixcd 

[georgesmixcd]

We both received a 1099-S. My form has the full amount of our proceeds and hers has $0.00. 
Based on the instructions and what you shared, it sounds like she does not have to report the sale on her tax filing and I will report all of it.

Thanks for your help @GeorgeM777 

[Opus 17]

---

@georgesmixcd wrote:

We both received a 1099-S. My form has the full amount of our proceeds and hers has $0.00. 
Based on the instructions and what you shared, it sounds like she does not have to report the sale on her tax filing and I will report all of it.

Thanks for your help @GeorgeM777 

---

Be aware that losses on personal property are not deductible.  You need to report the sale because you got a 1099-S, but if there was a loss, its not deductible against other income.

In general, the law will assume that if you 2 people are on a deed and there is no other document saying different, then you are 50/50 owners.   However, in this case, because the 1099-S was issued to one person, it may be easier to report it that way.  Since there is no taxable gain and no deductible loss, it's really just a matter of creating a paper trail so the IRS has something to match to the 1099-S. 

[georgesmixcd]

@Opus 17 we both received a 1099-S. However, one of had the full amount of the proceeds and the other person had $0.00 on the 1099-S. Thanks for the reply.